If the time series is composed of seasonal variation and long-term trend,we can use seasonal indexes and the regression equation to forecast.

Question

Quizplus · Accepted Answer

Seasonal indexes can be used to identify and quantify the seasonal variation in the data, while a regression equation can be used to model the long-term trend. By combining the two, we can create a forecast that takes into account both the seasonal and trend components of the time series.

If the Time Series Is Composed of Seasonal Variation and Long-Term